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Hemp, Inc. Updates Stockholders on Benefits/Rules Regarding its Spin-offs
By: PR Newswire
Dec. 24, 2012 03:34 AM
LAS VEGAS, Dec. 24, 2012 /PRNewswire/ -- Hemp, Inc. has developed an extremely diversified business plan since its inception, and as the company has grown, it has reached the point where the Company needs to narrow its focus. Many of Hemp, Inc.'s divisions have developed extremely promising products that no longer match the direction of the Company. Rather than closing these divisions and miss opportunity, the management has decided to spin-off these companies, leaving its investors with question... particularly what it means to them and to Hemp, Inc.
To clarify, a spin-off can occur when a company takes one of its divisions and completely separates it from the parent company, allowing the new public company to grow on its own (separate from the parent company). It, however, is not simply a give-away. Since the parent company owns most or all of the stock in the spin-off, the shareholders of the parent company directly benefit because the stock in the spin-off, that is owned by the parent company, is reissued to the shareholders of record, of the parent company, in the same percentage that the shareholder owns in the parent company. For example, if a shareholder of Hemp, Inc. owns 1% of the total shares of Hemp, Inc., then 1% of the stock owned by Hemp, Inc. in the spinoff company will be issued to that shareholder. It is important to understand that the shareholder does not receive the same number of shares, but rather the same percentage of shares that they own in HEMP, Inc. Per regulation, this must be done at no cost to the shareholder, and it will be true of each individual company that is spun-off.
Once spun-off, the newly created spin-off company is complete, and the shareholders of the new company elect a new Board of Directors. The new Board then selects officers to run the company. At this point, Hemp, Inc. no longer is involved in the spin-off company and the new company is unhindered by what Hemp, Inc. does. Shareholders or record of Hemp, Inc. will benefit in at least three ways: They will receive new shares of stock in new and more focused public corporations; Hemp, Inc. becomes more focused and more nimble; and since Hemp, Inc. has negotiated contracts with the spin-offs that will allow Hemp, Inc. to take advantage of their product development by benefits ranging from favored nation pricing to marketing agreements for the products when they enter the market, it is likely that Hemp, Inc. revenues will increase and the bottom line to follow.
Hemp, Inc. has currently created a very innovative and powerful marketing strategy never before employed in marketing history. Hemp, Inc.'s CEO, Bruce Perlowin calls it "cooperative quantum marketing." According to Perlowin, this is a new socio-economic paradigm, which has been developing over the last 15 years, reached its complete maturity on December 21, 2012. The record date, which is the date that everyone on the company's books as a shareholder is determined to receive the stock in the new spin-off company, is tied to the date when the new trading symbols will be issued for the spin-offs. Those dates will be determined by regulators, and while Hemp, Inc. management is working diligently toward that end, the exact date has not yet been set.
Since regulators have not yet solidified the record date, there is opportunity for more shareholders to benefit and receive additional stock, in the spin-offs, past the initial anticipated date of November 21, 2012.
Management will continue to release news regarding the spin-offs as it is pertinent.
Hemp, Inc.'s TRIPLE BOTTOM LINE
Hemp, Inc. (OTC: HEMP) seeks to benefit many constituencies, not exploit or endanger any group of them. Thus, the publicly-traded company believes in "upstreaming" of a portion of profit from the marketing of their finished hemp goods back to its originator. By Hemp, Inc. focusing on comprehensive investment results—that is, with respect to performance along the interrelated dimensions of people, planet, and profits— our triple bottom line approach can be an important tool to support sustainability goals.
SOURCE Hemp, Inc.
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